IRCTC 2023-24 Annual Report Analysis

Wed, 7 Aug

IRCTC has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

IRCTC Income Statement Analysis

• Operating income during the year rose 20.6% on a year-on-year (YoY) basis.
• The company's operating profit increased by 8.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 33.0% in FY24 as against 36.8% in FY23.
• Depreciation charges increased by 6.5% and finance costs increased by 15.7% YoY, respectively.
• Other income grew by 36.6% YoY.
• Net profit for the year grew by 10.5% YoY.
• Net profit margins during the year declined from 28.4% in FY23 to 26.0% in FY24.

IRCTC Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	35,415	42,702	20.6%
Other income	Rs m	1,204	1,645	36.6%
Total Revenues	Rs m	36,619	44,347	21.1%
Gross profit	Rs m	13,034	14,074	8.0%
Depreciation	Rs m	537	572	6.5%
Interest	Rs m	161	186	15.7%
Profit before tax	Rs m	13,540	14,960	10.5%
Tax	Rs m	3,481	3,850	10.6%
Profit after tax	Rs m	10,059	11,111	10.5%
Gross profit margin	%	36.8	33.0
Effective tax rate	%	25.7	25.7
Net profit margin	%	28.4	26.0

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IRCTC Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 30 billion as compared to Rs 28 billion in FY23, thereby witnessing an increase of 9.4%.
• Current assets rose 17% and stood at Rs 55 billion, while fixed assets rose 33% and stood at Rs 8 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 63 billion as against Rs 53 billion during FY23, thereby witnessing a growth of 19%.

IRCTC Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	24,784	32,298	30.3
Current Liabilities	Rs m	27,646	30,244	9.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	53,314	63,426	19.0
Current assets	Rs m	47,250	55,369	17.2
Fixed Assets	Rs m	6,064	8,057	32.9
Total Assets	Rs m	53,314	63,426	19.0

IRCTC Cash Flow Statement Analysis

• IRCTC's cash flow from operating activities (CFO) during FY24 stood at Rs 9 billion, an improvement of 8.7% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -4 billion, an improvement of 7% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 3 billion from the Rs 606 million net cash flows seen during FY23.

IRCTC Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	8,117	8,822	8.7%
Cash Flow from Investing Activities	Rs m	-3,167	-2,003	-
Cash Flow from Financing Activities	Rs m	-4,343	-4,043	-
Net Cash Flow	Rs m	606	2,775	357.6%

Current Valuations for IRCTC

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.9, an improvement from the EPS of Rs 12.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 929.9, stands at 67.0 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 23.0 times, while the price to sales ratio stands at 17.4 times.
• The company's price to cash flow (P/CF) ratio stood at 55.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	44.3	53.4
TTM Earnings per share	Rs	12.6	13.9
Diluted earnings per share	Rs	12.6	13.9
Price to Cash Flow	x	43.3	55.3
TTM P/E ratio	x	45.6	67.0
Price / Book Value ratio	x	22.5	20.0
Market Cap	Rs m	558,820	645,760
Dividends per share (Unadj.)	Rs	5.5	6.5

Ratio Analysis for IRCTC

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during FY24, from 1.7x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 81.2x during FY24, from 85.0x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 34.4% during FY24, from 40.6% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 46.9% during FY24, from 55.3% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 17.8% during FY24, from 19.2% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.7	1.8
Debtors’ Days	Days	1,178	1,175
Interest coverage	x	85.0	81.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.2	17.8
Return on equity	%	40.6	34.4
Return on capital employed	%	55.3	46.9

To see how IRCTC has performed over the last 5 years, please visit here.

IRCTC Share Price Performance

Over the last one year, IRCTC share price has moved up from Rs 653.7 to Rs 929.9, registering a gain of Rs 276.2 or around 42.3%.

Overall, the S&P BSE SENSEX is up 20.5% over the year.

(To know more, check out historical annual results for IRCTC and quarterly results for IRCTC)